Macau Casino shares Fall as Typhoon, weak VIP hit Revenue.
Share of Macau Casino operators slumped after data showed the weakest growth revenue in last 2 years at the same time as concerned increases that the Golden week holiday will be weaker than expected.
Macau Casino Stocks sank to the lowest level in almost three weeks as a typhoon and a pullback by high stakes bettors weighed on gambling revenue, extending a softening of growth since the second quarter.
Gross Gaming revenue in Macau rose 2.8 percent in september from a year earlier, the weakest showing since August 2016. Typhoon Mangkhut ripped through Macau in mid September. The Storm Forced a 33 hour shutdown of casinos, the first time Resorts have been closed since gambling licenses were given out in 2002.
“The Typhoon Mangkhut and Casino suspension were the obvious drag, but underlying demand in VIP was softer than expected as well,” JP Morgan Chase & Co. Analyst DM Kim wrote in a note on monday.
“Though not a big surprise, this does suggest the market will need to lower VIP expectations for the fourth quarter and next year”.
The Benchmark Gauge of Macau, casino shares fall of 2.9 percent on Tuesday. With Wynn Macau Ltd. And Galaxy Entertainment group Ltd. Dropping more than 4.5 percent.
GOLDEN WEEK: Analyst forecast the weakening trends will continue, with October growth predicted at 5 percent. The industry is closely watching the influx of tourists during Golden week as indicator for the rest of Months.
“Golden Week is shaping up to be weaker than initially expected” Bernstein analyst led by virtual Umansky wrote, nothing that there are still rooms available for booking during the week.
About 40% of the rooms in territory’s 3 to 5 Star hotels were fully booked as of Friday. That compares with 80% at roughly the same Time last year.